How Much Does an E-commerce License Cost in UAE?
(Detailed Breakdown)
E-commerce is thriving in the UAE, thanks to the country’s digital-first economy and supportive government policies. Whether you are a small entrepreneur or an established business, securing an e-commerce license in the UAE is crucial for legally operating your online store. In this guide, we will break down the costs of e-commerce licenses, covering both free zones and mainland options, and explain why free zones may be the preferred choice.
Why Choose a Free Zone Over Mainland for E-commerce?
Read: Mainland vs Freezone
Free zones are a popular choice for e-commerce businesses due to their distinct advantages:
- 100% Foreign Ownership: Unlike mainland companies, no local sponsor or partner is required.
- Tax Benefits: Free zones offer 0% corporate tax and personal income tax.
- Simplified Processes: Setting up in a free zone involves fewer regulatory requirements compared to the mainland.
- Cost-Effective Options: Free zones provide competitive packages with flexibility in office and visa requirements, including virtual offices.
- Global Reach: Free zone companies can focus on international markets with ease.
While mainland companies offer access to the local UAE market, the lower setup and operational costs in free zones make them a great choice for startups and small-to-medium enterprises.
Cost Breakdown for Free Zone E-commerce License (2024)
Below is a detailed breakdown of the IFZA Free Zone packages offered by Mindbridge for e-commerce licensing:
| Package | License Cost (AED) | Establishment Cost (AED) | Visa Cost | Total Cost (AED) |
|---|---|---|---|---|
| 0 Visa License | 12,900 | N/A | N/A | 12,900 |
| 1 Visa License | 14,900 | 2,000 | Free for lifetime | 16,900 |
| 2 Visa License | 16,900 | 2,000 | 3,750 (optional) | 18,900 (or 22,650) |
| 3 Visa License | 18,900 | 2,000 | 3,750 per visa | 20,900 (or 24,650) |
| 4 Visa License | 20,900 | 2,000 | 3,750 per visa | 22,900 (or 26,650) |
Benefits with IFZA:
- No physical office requirement for most packages.
- Multiple business activities under one license.
Cost Breakdown for Mainland E-commerce License (2024)
For entrepreneurs aiming to access the UAE local market, a DED e-commerce license is the go-to option. Here’s a breakdown of the associated costs:
| Cost Component | Estimated Amount (AED) |
|---|---|
| Trade Name Registration | 500–1,000 |
| Initial Approval and Licensing | 12,000–14,000 |
| Immigration Card and Visa Fees | 4,000–5,000 |
| Office Space or Ejari | 7,000–15,000 annually |
| Total Estimated Cost | 18,000–20,000 |
Total Estimated Cost: AED 18,000–20,000
Key Features:
- Mainland companies have direct access to the UAE consumer market.
- Suitable for businesses requiring physical stores or warehouses.
- More regulatory requirements compared to free zones.
Ready to Get Started?
Starting an e-commerce business in the UAE has never been easier! Whether you choose a free zone for its cost-effectiveness or the mainland for market access, Mindbridge is here to guide you.
Contact us today for a free consultation and explore tailored solutions, including free website development for IFZA and SPC clients.
